In a significant business achievement, India witnessed the highest ever companies registration during the financial year 2021-22.
As per the data released by the Ministry of Corporate Affairs (MCA) on Monday, the financial year 2020-22 saw the registration of more than 1.67 lakh company incorporations as compared to 1.55 Lakh companies during FY 2020-21.
The increase is significant considering that the number of companies incorporated during Financial Year 2020-21 was the highest in any of the previous years.
The incorporations during Financial Year 2021-22 are 8% more than the incorporations during FY 2020-21.
While MCA had registered 1.24 lakh companies during FY 2018-19 and 1.22 lakh companies in 2019-20 respectively, it had registered 1.55 Lakh companies during FY 2020-21.
As part of the Government of India’s drive for Ease of Doing Business (EoDB), the MCA has taken many initiatives thereby saving as many procedures, time, and costs for starting a business in India.
SPICE+ Platform
The Ministry of Corporate Affairs launched the SPICe+ form in February 2020 and thereby integrating 11 different services mentioned below, across 3 Central Government Ministries and Departments (Ministry of Corporate Affairs, Ministry of Labour and Department of Revenue in the Ministry of Finance), 3 State Governments (Maharashtra, Karnataka and West Bengal), and NCT of Delhi:
- Name Reservation
- Company Incorporation
- Director Identification Number
- EPFO Registration No.
- ESIC Registration Number
- PAN
- TAN
- Profession Tax Registration Number for the state of Maharashtra, Karnataka, and West Bengal
- Bank Account number and
- GSTN Number (on an Optional basis)
- Shop and Establishment Registration No. for NCT of Delhi.
Maharashtra tops the States List
During Financial Year 2021-22, the States having the highest number of registrations were Maharashtra (31,107 companies) followed by Uttar Pradesh (16,969 companies) Delhi (16,323 companies) Karnataka (13,403 companies), and Tamil Nadu (11,020 companies).
Sector-wise, the maximum number of companies were incorporated in the Business Services (44,168 companies), followed by Manufacturing (34,640 Companies) Community, personal & Social Services (23,416 companies), and Agriculture & Allied Activities (13,387 companies).
The MCA is continuously striving to transform the regulatory environment and has taken several measures in the recent past towards EoDB like:-
- Revision of Definition of Small Companies which has reduced compliance burden on about 2 lakh companies
- Zero MCA fee for company incorporation up to Rs 15 lakh authorized capital
- Incentivisation of incorporation of One Person Companies (OPCs)
- De-criminalisation of technical & procedural violations under the Companies & LLP Act.